Chartis, a property-casualty and general insurance organization, has launched the merchant data security policy, a new solution developed by its executive liability division.
According to Chartis, the new merchant data security policy allows credit card processors to address the financial burden to the processor and its merchants as a result of a data security breach that puts credit card data in a merchant’s possession at risk.
The new program covers a range of costs associated with a data breach which include: monetary assessments, including contractual fines and penalties, levied by a card association and cost of security assessments and/or forensic audits to assess data security practices and investigate a breach incident.
In addition, the new policy also includes cost of bank card replacements and related expenses; and post-incident expenses, including identity theft recovery services, credit monitoring and identity theft awareness training.
Tracie Grella, president of Professional Liability, a unit of Executive Liability, said: “The Merchant Data Security Policy provides processors with a valuable enhancement to their core services. It also allows a processor’s merchants to manage unexpected and potentially large assessments that could affect their ability to accept credit card payments or cause a potential bankruptcy.”